Gold Tumbles as Dollar Strength and Fed Hawkishness Weigh on Prices

Gold prices slipped towards $4,330 an ounce on Wednesday as a firmer dollar and expectations for further Federal Reserve tightening outweighed relief from falling oil prices.

The decline remains relatively contained given the increasingly hawkish rates backdrop, with record Chinese imports and sustained official-sector buying continuing to provide support.

China's gold demand is seen as a structural bid, with over 1,000 tonnes of gold imported through August already exceeding its total purchases for all of 2025.

Boston Fed President Susan Collins and Richmond Fed President Thomas Barkin have warned that the risk of inflation remaining materially above 2% has grown.